“People are making a lot of money charging nothing” writes Chris Anderson, Editor In Chief of WIRED and Author of “The Future of a Radical Price”. “In an increasingly competitive marketplace, much intellectual property is often distributed free and suppliers of internet content have exploded in number”, continues Anderson.
Now, if you see a lot of FREE offers on the Internet, it is because the cost of one more customer or the cost of one more pair of eyeballs is next to nothing.
If it costs next to nothing, should not marketers have something else to sell? In what Anderson describes as “freemiums”, a strategy that offers a new product for sale when the first product is distributed freely, the products that are sold help to subsidize those products that are given away. But what if, instead of FREE, we gave the customer rewards for buying our product. Those rewards are then only used to buy more of our products. At what point do we take the wonder of FREE to the next level?
At what point do we create a new product for our existing customer and ask him to pay for it? At what point do we start to make money?